We are writing to you to bring your attention to an inequity in the NYS Tax Law which is detrimentally affecting small businesses around the state of New York, severely impeding their ability to compete and in many cases resulting in business closings and lost jobs.  As you work to finalize the 2014-2015 NYS Budget we ask that you repeal the State’s recent imposition of the job killing transportation sales tax.  This burdensome, job killing nuisance tax unfairly burdens small business throughout NYS and is not only inhibiting growth in our industry but is also resulting in many transportation companies closing their doors and laying off employees.

    In 2009, under a previous executive administration, New York State adopted a new sales tax on transportation services.  This burdensome tax had an immediate negative impact on the transportation service business in New York State and its thousands of hardworking drivers and their families.  While the tax was subsequently amended to exempt certain segments of the transportation industry, the tax remains intact on black cars and has had a significant negative impact on many transportation service professionals throughout the State.  These amendments to the tax and subsequent regulatory enactments, have significantly exacerbated the detrimental effect upon many of New York’s small businesses who provide these services and have resulted in placing the black car segment of the transportation industry at an unfair competitive disadvantage as they try to compete for customers with those who are no longer subject to the tax.  The burden of this unfair tax, which continues to result in significant economic hardship for these small transportation businesses is certainly not outweighed by an economic benefit to the State, as the direct tax dollars which may be foregone in State and Local revenue are minimal at best.

    The NYS Senate has included the repeal of this tax in their one-house budget at Part RR of S.6359-C.  We implore you to review this issue and include the repeal of the transportation sales tax in your final 2014-15 enacted Budget.  I am confident that you will agree that the repeal of this nuisance tax will help enhance New York’s competitiveness and save and grow the jobs of the hardworking members of New York’s transportation industry.